KARACHI, Feb 1: Cotton market on Tuesday maintained firm trend as prices were firmly held at the overnight levels amid light trading mainly confined to fine lots.
The visiting Chinese cotton delegation, which met the board of director of Karachi Cotton Association (KCA) and leading exporters and ginners has detailed discussions with them on the supply and price options.
Although there was no indication of any commitment on either side of the participants, some of the ginners and private sector exporters expressed their optimism about possible deals in the weeks to come, ginners said. However, it was not clear whether the Chinese team will purchase cotton from the private sector or from the TCP, which has already procured 2.5m bales for export markets, they said.
Floor brokers said leading textile mills and spinners are short of their annual needs of fine lots needed by them to spin higher counts of cotton yarn both for the local and foreign markets and are after each lot readily available below Rs2,200 per maund.
That is perhaps why their major thrust is on the southern Punjab and upper Sindh lint and are picking it up between Rs2,100 to Rs2,150 depending on quality of lint, they said.
Although leading spinner groups are not inclined to take even a technical breather, some of the leading ginners entertaining higher price ideas are reluctant sellers at the offered prices, they added.
Meanwhile, reports coming from the cotton belt indicate that most of the ginneries are engaged in mopping operations as arrivals of phutti have dried up. Only those are operational, which have stray stocks of phutti.
The market sentiment was also influenced uppishly followed by reports of fresh rise in New York cotton futures. Both the ruling March and the distant May settlements were quoted higher by 0.41 and 0.45 cents per lb at 43.76 and 45 cents per lb.
Local spot rates were again held unchanged in line with the average rate at which ready business is being transacted. Ready off-take was modest totalling 7,000 bales, mainly from the upper Sindh and southern Punjab ginneries including 2,000 bales, Rahimyar Khan at Rs2,100.00 and 3,000 bales, upper Sindh around Rs2,150 per maund.
The following are Tuesday's new crop Karachi Cotton Association (KCA) official spot rates for local dealings in Pak rupees for base grade 3 staple length 1-1/32" micronair value between 3.8 to 4.9 NCL.
